Governments and investors are creating a business-friendly market for e-scooter rental companies. Know how much you can earn with an e-scooter rental app
Posted on May 29, 2019 By Ankit Virani
The e-scooter rental market becomes bee’s knees in just a few years. Users, governments, and investors all are appreciating how incredibly e-scooter rental service provider companies are reducing the emission of carbon dioxide by providing an environment-friendly mode of transportation. Nowadays, starting an e-scooter rental business is so easy and profitable. With a very cost-friendly marketing campaign, you can attract a heap of users. Moreover, investors and governments are no longer losing their marbles over your idea of the e-scooter rental business. They always come to the aid if you need legal help and even financial help.
In this blog, we will get to know how investors and governments are creating more opportunities for those entrepreneurs who are wishing to start a new e-scooter rental company. We will also understand the market scope of the e-scooter rental startup.
How governments and investors are creating a business-friendly infrastructure for e-scooter rental companies?
When in 2012, a USA-based e-scooter rental company named Scoot first time launched a fleet of e-scooters and e-scooter rental mobile app, government and investors highly criticized its business policy and business model. After a few years, more e-scooter rental companies rolled out its fleet of e-scooters with the e-scooter rental apps. But local governments banned most of them as functionaries assumed e-scooter riding on the streets is not safe for pedestrians and for riders. In fact, Bird and Lime which are the most successful e-scooter rental companies also fought a long legal battle against the government of the USA. As if this was not enough, investors were not investing in e-scooter rental companies which had already in legal troubles.
In recent years, different local governments have understood the importance of e-scooters and provided legal freedom to e-scooter rental companies. Investors are also now opting for e-scooter rental service provider companies to invest. With more investment, e-scooter rental companies are expanding their operational areas and powering mobile apps with the new technologies which avail them to attract more users and earn more. Following image depicts how much of money top e-scooter rental companies has raised and what is the valuation of the company.
Here, it is worth to mention that a robust e-scooter rental app which establishes a precise connection to the e-scooters is the very basic requirement of the e-scooter rental business. So, always prefer to burn the candle from both ends before outsourcing your e-scooter app development project.
Recently, The San Francisco Municipal Transportation Agency has decided to allow e-scooter rental companies to operate their business in the city of San Francisco. For that, SFMTA has asked pricing structure, proposed service area and fleet size from the owners of the companies who wish to dominate the e-scooter rental market of San Francisco. So now, it is anticipated that Uber’s Jump which already has permission to operate its e-scooter rental business in San Francisco, will soon no longer the sole operator in the city.
Another city of USA, Tampa, has also tied up with two major e-scooter rental companies Lime and Spin to launch a pilot program of e-scooter rental service in the city.
If we talk about the recent funding details, then India-based e-scooter manufacturer Ather Energy raised $51 million. This funding round of Ather Energy was led by the co-founder of Flipkart, Hero MotoCorp and Venture debt VC firm. After this new funding round, Ather Energy is now valued at $400 million. Ather Energy is manufacturing e-scooters in its own plant. They are also building a network of charging stations across their operational area. Riders can use its app, Ather Grid, to find the nearest charging station. In one of his interviews, co-founder of Ather Energy has stated that they are planning to launch their e-scooter program in more cities of India with an extensive product portfolio.
Talking about the European market of e-scooters, Top carmakers like BMW, Ford, and Volkswagen have recently launched their e-scooters. Ford has gone an extra mile and acquired e-scooter rental company Spin to fit in the micro-mobility market. Additionally, the upper house of the German Parliament voted to allow e-scooter rental service provider companies to operate their business in the major cities of Germany.
Countries which had documented inflexible rules and regulations against e-scooter rental companies, now encouraging them to commence their e-scooter rental services in different cities. Investors are also paying more heed to e-scooter rental companies.
A top e-scooter app development company, Coruscate Solutions will not only develop IoT integrated e-scooter rental app but, but assist you to satisfy a few remaining legal norms of the government.
In the next section of the blog, we will discuss the scope of the e-scooter rental business and how much money you can make with a fleet of e-scooters by answering a most requested question,
Do people actually prefer to commute on e-scooters?
Because of the urbanization, the number of cars running on the streets has increased to an alarming figure. Hours-Long traffic becomes very common in major cities. All commuters are complaining that they need more time to reach the office and home. An e-scooter is an easy way to commute in the city. It is affordable and reliable. According to the Lime public data, 30% of the riders report using e-scooters to replace car rides. Another data from Lime shows that how fast Lime, an e-scooter rental company has achieved a milestone of completing 1 million rides compared to Lyft, an online taxi booking service.
However, many local factors affect the number of users you will successfully attract. Thus, an analysis of the local factors matters the most. Our team of business expert will consider all local factors before handing over your requirements to the developers to develop the e-scooter app.
Is it safe to develop e scooter app for your e scooter rental business ? and, How much you can earn from it?
A team of Coruscate Solutions has precisely studied the business models of top e-scooter rental companies and discovered the financial benefits of starting the e-scooter rental company.
In the e-scooter rental industry, the profit is counted based on the per e-scooter. To understand it in a more easy way, let’s assume a scenario.
Suppose, you have deployed a fleet of 100 e-scooters. Each of them is utilized for 5 rides per day. The average fare for the one ride is $3 and the operational cost of one ride is $2.5. So, an e-scooter helps you to earn a profit of $2.5 per day. That means you can earn $250 per day with 100 e-scooters.
If you have noticed here, an operational cost plays a very important role. By reducing the operational cost, you can boost the earning. So, we advise you to buy the latest and more scalable e-scooters which curbs the operational cost.
Coruscate Solutions is one of the few e-scooter app development companies which helps you to select the most affordable and inch-perfect e-scooters. We develop an e-scooter app which establishes a real-time connection to all e-scooters. With our robust IoT technology, you can track every e-scooters and its performance. Our feature-packed admin panel gives you real-time insight into your business. Additionally, we let you to host the whole IT system of your e-scooter rental business on our server which means you can definitely save a few bucks. To know more about common features and cost of developing an e-scooter app, visit our e-scooter app development page. We also provide a free consultation. So, feel free to contact us.
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